BUSINESS RESOURCES

PAYMENT-IN-LIEU-OF-TAX (PILOT) PROGRAMS

Companies offering many new jobs with higher wages and significant capital investment may qualify for property tax reduction or abatement on real and personal property taxes. These requests are negotiated with the prospective or existing company on a case-by-case basis.

PERMITTING & LOCAL BUSINESS ASSISTANCE

The Economic Development Office can assist new and existing companies in their interaction with local, state, and federal government agencies.

The Local Business Assistance Program provides a streamlined structure to access representatives of all applicable agencies in one meeting to:

Outline services
Answer questions
Facilitate and expedite permitting, licensing, and regulatory processes

JOBS TAX CREDIT

This tax incentive provides qualified new or expanding businesses in Tennessee with a $4500 credit if the company creates a minimum of 25 new full-time jobs in one year and makes a capital investment of at least $500,000.

The credit can be used to offset a firm’s franchise and excise tax liability starting at:

33-1/3 percent per year for a business that creates 25-1,000 jobs
50 percent for 1,000-3,000 jobs
75 percent for 3,000-5,000 jobs
100 percent for more than 5,000 jobs.

The credit balance can be carried forward for 15 years if a company cannot use all of the credit in the first year.

CORPORATE EXCISE TAX CREDIT

One percent of the cost of industrial machinery that has been certified by the Tennessee Department of Revenue, Sales and Use Tax Division can be taken as an industrial machinery excise tax credit.

This credit applies to distribution equipment, computer equipment, and telephones for all types of new expanding companies that qualify for the Jobs Tax Credit. Material handling equipment and racking systems for distribution operations also apply when the capital investment exceeds $10 million over three years.

SALES TAX EXEMPTIONS

Sales tax exemptions and reductions are available on industrial machinery, energy, fuel, and water used in manufacturing or processing products for resale off-premises. Material handling equipment and racking equipment are sales tax exempt for companies investing a minimum of $10 million over three years.

TRAINING

The state of Tennessee provides funds for eligible projects that can offset costs incurred by companies during the training process. Services typically are handled on a cash reimbursement basis, with qualified expenses including hourly trainer costs, travel expenses, hotel costs, etc.

TENNESSEE DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT

The Tennessee Department of Labor & Workforce Development maintains a database and matching service for the largest pool of job seekers in Tennessee. The service includes recently displaced workers as well as applicants seeking job changes. The department can offer a range of services to companies expanding or relocating into Tennessee. All services are provided at no cost to the company or to the job seeker.

Services include:

Pre-screening of applicants
Pre-testing of applicants
Assistance with the provision of the labor market and wage data

TENNESSEE JOB SKILLS PROGRAM

The Tennessee Job Skills Program provides grants for employee training for existing and expanding firms in Tennessee. Approximately 70 percent of the grant funds are designated for existing Tennessee firms that have training needs to improve the skills of their workforce. Grants are available to manufacturing, technology-based, or high-growth companies.

TENNESSEE VALLEY AUTHORITY

The Tennessee Valley Authority (TVA), well known for its economic power, supplies all electricity, which is distributed through various providers.

The Tennessee Valley Authority offers a federal economic development loan program to assist businesses in financing industrial development projects, including:

New industrial plants
Existing industry expansions
Infrastructure development
Assistance to industries

A maximum low-interest loan of up to $2 million per project is available with a repayment timeframe of up to 10 years.

The credit balance can be carried forward for 15 years if a company cannot use all of the credit in the first year.

FASTTRACK INFRASTRUCTURE DEVELOPMENT PROGRAM

This fund is utilized to offset infrastructure improvement costs, site grading costs, and other infrastructure-related costs. The maximum amount available for any one project is $750,000. The amount of FIDP grant is based on a cost-benefit analysis conducted by the Tennessee Department of Economic and Community Development and the infrastructure needs of the site.